Principales Questions: (1) Les parts sociales d'une société en commandite appartenant à une société de gestion sont-elles un actif admissible aux fins du test de qualification des actions à titre d'actions admissibles de petite entreprise au paragraphe 110.6(1)? Is the interest in a partnership, held by a corporation, an eligible asset for purposes of determining whether the shares qualify as small business corporation shares at subsection 110.6(1)?
(2) Les revenus qui seront attribués sur les parts sociales participantes détenues par Gesco se qualifieront-ils à titre de revenus provenant d'une entreprise exploitée activement et ce, aux fins de la déduction accordée aux petites entreprises? Will the income that is allocated to a corporation, based on that corporation's interest in a partnership, qualify as active business income, for purposes of the small business deduction?

Position Adoptée: (1) En l'espèce, oui. In this situation, yes.
(2) En l'espèce, nous acceptons la décision de la Cour fédérale (1ère instance) dans l'affaire Norco traitant du paragraphe 129(6). In the current situation, we accept the conclusions of the Federal Court (Trial Division) dealing with subsection 129(6).

Raisons: Voir lettre ci-dessous. See letter below.

7 May 2013 External T.I. 2013-0481321E5 F - Logement sécurisé - travail de nature temporaire

CRA Tags

6(6)(a)(i)

Summary Under

Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i)

payment of rents by a foreign employer at a secure compound in another country could qualify except for after when employment ceased

Principales Questions: 1. Est-ce que le contrat de travail du contribuable représente un travail de nature temporaire au sens du sous-alinéa 6(6)a)(i) de la Loi de l'impôt sur le revenu (la Loi)?/ Whether the employment of a taxpayer is temporary in nature pursuant to subparagraph 6(6)a)(i) of the Income Tax Act (the Act)?
2. Est-ce que la valeur d'un logement sécurisé, dont le loyer est directement payé au locateur par l'employeur, peut être soumis aux plafonds prévus pour les loyers dans les zones visées par règlement indiqués dans le Guide RC4054?/ Whether the value of a securized lodging, which the rent was directly paid to the landlord by the employer may be related to the ceiling amounts for housing benefits paid in prescribed zones pursuant to Guide RC4054?

Position Adoptée: 1. Question de fait. Commentaires généraux. Revue des critères d'un travail de nature temporaire/ Question of fact. General comments. Review of the criteria determining what is a temporary work.
2. Non/ No

Raisons: 1. Dépend de la preuve si l'employé avait un emploi permanent ou s'il avait l'intention de travailler pour l'Employeur dans un chantier particulier à l'étranger de façon temporaire./ Depends on the evidence if the employee has a permanent employment or if the intention of the employee is to work at a special work site outside Canada on a temporary basis.
2. Le Guide RC4054 s'applique seulement aux communautés admissibles qui sont indiquées dans la publication T4039. Les plafonds prévus au Guide RC4054 sont aux fins de l'article 110.7 de la Loi./ Guide RC4054 applies only to qualifying communities which are listed in Publication T4039. The ceiling amounts indicated in Guide RC4054 are with respect to section 110.7 of the Act.

29 April 2013 External T.I. 2013-0476131E5 F - Régime d'assurance-collective

CRA Tags

153(1)(a), 6(1)(a), 6(1)(e.1), 6(1)(f)

Summary Under

Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e.1)

overview of interrelationship between ss. 6(1)(a)(i), 6(1)(e.1) and 6(4)

Summary Under

Tax Topics - Income Tax Act - Section 6 - Subsection 6(4)

general description of the s.6(4) exception to s. 6(1)(a)(i)

Principales Questions: 1. Est-ce que des cotisations à un régime d'assurance collective payées par un employeur sont imposables pour les employés?/ Are contributions paid by an employer to a group insurance plan taxable for the employees?
2. Est-ce que ces contributions à un régime d'assurance-collective sont soumises à des retenues en impôt et des cotisations à l'assurance-emploi? Are contributions to a group insurance plan subject to income tax and unemployment insurance withholding?

Position Adoptée: 1. Information générale fournie/ General information provided. 2. En règle générale, seuls les avantages imposables sont sujets aux retenues d'impôt et de cotisations à l'assurance-emploi. / Only taxable benefits are subject to income tax and unemployment insurance withholding.

Raisons: 1. La Loi/ The Act./ 2. Alinéa 153(1)a) de la Loi de l'impôt sur le revenu et disposition pertinente de la Loi sur l'assurance-emploi, ainsi que le Guide T4001 Les retenues sur la paie et les versements./ Subsection 153(1)a) of the Income Tax Act and relevant provision of the Unemployment Insurance Act, and Guide T4001 Payroll Deductions and Remittances.

23 April 2013 External T.I. 2012-0461741E5 - Calculation of bump limit under 88(1)(d)

CRA Tags

88(1)(d)

Summary Under

Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) - Subparagraph 88(1)(d)(ii)

Principal Issues: (1) For the purposes of the 88(1)(d)(ii) bump limit, whether in a situation where the fair market value of a particular property of the subsidiary decreased between the time of the acquisition of control and the time of the winding-up, the cost to the parent of the property can still be increased up to the fair market value of the property as of the date of the acquisition of control? (2) For the purposes of the 88(1)(d)(ii) bump limit, in a situation where an identical property to the eligible property (e.g. a share of a public corporation) is acquired by the subsidiary after the acquisition of control, what is the cost amount of the eligible property, the average cost or the historic cost?

Position: (1) Yes. (2) Under proposed amendments to subparagraph 88(1)(d)(ii), the average cost determined under subsection 47(1) with respect to the cost amount to the subsidiary of the property immediately before the winding-up; and the historic cost with respect to the cost amount to the subsidiary of the property at the time the parent last acquired control of the subsidiary

Reasons: (1) and (2) Wording of the Act

Conference

5 June 2013 Roundtable, 2013-0490321M6 - AJCTC/ATTC - Government Assistance

CRA Tags

9, 127(5), (11.1)

Principal Issues: 1. For purposes of the apprenticeship job creation tax credit, whether an employer's otherwise eligible salaries and wages payable in the year in respect of its apprenticeship expenditure is reduced by the Ontario's apprenticeship training tax credit (ATTC) and 2. vice versa.

Position: 1. Yes. 2. No.

Reasons: 1. See comments. 2. For reasons given in XXXXXXXXXX.

17 May 2012 IFA Roundtable Q. 8, 2012-0444121C6 - 2012 IFA Seminar - Q.8 Forms T1134A and T1134B

Principal Issues: Discussion of status of revisions to T1134 forms and plans for electronic filing for those forms.

Position: Comments provided by ILBD.

Reasons: See response.

Technical Interpretation - Internal

3 June 2013 Internal T.I. 2012-0468131I7 - Participating debt interest

CRA Tags

212(3), 212(1)(b), 20(1)(c)

Summary Under

Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c)

deductible interest on subordinated convertible debt with participating interest payble in prefs

Principal Issues: Is any amount of the Aggregate XXXXXXXXXX Amounts deductible as interest?

Position: Yes, the entire amount is interest and is deductible to the extent it is reasonable.

Reasons: Consistent with Sherway Centre, participating payments for amounts that are interest are deductible under paragraph 20(1)(c) where: the payment is limited to a stated percentage of the principal (or the facts show that the payments are intended to increase the interest rate on the loan to the prevailing market rate); the limiting percentage of the principal, if any, reflects prevailing arm's-length commercial interest rates; and no other facts indicate the presence of an equity investment.

25 April 2013 Internal T.I. 2013-0478511I7 F - Distribution à un commanditaire

CRA Tags

96(1)(f), 96(1)(a), 103(1), 96(1), 96

Summary Under

Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate

real estate capital gains flowed through to limited partner retained character

Summary Under

Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f)

allocated capital gains retained their character unless re services performed by partner in course of separate business

Summary Under

Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(1)

distinction between return on partnership investment and services rendered by partner in the course of a separate business

Summary Under

Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv)

services rendered by limited partner to LP gave rise to ACB increase if no s. 9 income inclusion for fee income

Principales Questions: Quelle est la nature des sommes distribuées par une société en commandite à ses associés, incluant un commanditaire? What is the nature of the amounts distributed by a limited partnership to its partners, including a limited partner?

Position Adoptée: Question de fait. Si les sommes représentent une distribution de gains en capital, elles seront imposées dans les mains des associés en tant que tel. Si les sommes représentent une contrepartie pour services rendus par le commanditaire, alors elles pourraient être incluses dans le calcul du revenu d'entreprise de ce dernier, dans la mesure où les services sont rendus dans le cadre d'une entreprise distincte de celle exploitée par la société en commandite. Question of fact. If the amounts represent a distribution of capital gains, they will be taxed as such in the hands of the partners. If the amounts represent consideration for services rendered by the limited partner, the amounts could be included in the limited partner's business income as long as the services are rendered in the course of a business that is separate from the partnership's business.

Raisons: Nous devons analyser le contrat de société ainsi que tout autre élément pertinent. Must analyse the partnership agreement and all other relevant elements.

2010 Internal T.I. 2010-0369741I7 - Taxable Benefits and Moving Expenses

CRA Tags

6(1)(a), 6(1)(b)

Principal Issues: Taxability of a reimbursement of certain travelling and living expenses that might not otherwise be deductible as moving expenses under section 62 of the Act.

Position: Mixed question of fact and law. However, a taxpayer's temporary living costs at the new work location and certain travelling costs for travel between the old work location and new work location during a transitory period might not be taxable where during such a period the taxpayer is maintaining a residence at both locations.

Reasons: See above.

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Income Tax Severed Letters - 2013-06-19

Ruling

Technical Interpretation - External

Conference

Technical Interpretation - Internal